Employers took 2,763 mass layoff actions in June that resulted in the separation of 279,231 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Each action involved at least 50 persons from a single employer. The number of mass layoff events decreased by 170 and associated initial claims decreased by 33,649. Both measures had been at record high levels in May. Over the year, the number of mass layoff events increased by 1,046, and associated initial claims increased by 104,483. In June, 1,235 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 159,310 initial claims. Over the year, the number of manufacturing events increased by 680, and associated initial claims increased by 79,566.

The Congressional Budget Office (CBO) released a brief that analyzes the effects of changes in the health insurance system on the U.S. labor market. In 2009, about three out of every five nonelderly American are expected to have health insurance that is provided through an employer or other job-related arrangement, such as a plan offered through a labor union. Changes to the health insurance system could affect labor markets by changing the cost of insurance offered through the workplace and by providing new options for obtaining coverage outside the workplace.

In the current system, employment-based plans are popular largely due to three reasons:

• They are subsidized through the tax code: Nearly all payments for employment-based insurance are excluded from taxable compensation and thus are not subject to income and payroll taxes.
• Employers offering coverage usually pay a large share of the premium – partly to encourage broad participation among their employees, so as to limit the potential for “adverse selection.”
• Larger group purchasers can spread administrative costs over a larger number of people, using these economies of scale to reduce costs imbedded in premiums.
• Although employers directly pay most of the costs of their workers’ health insurance, the available evidence indicates that active workers—as a group—ultimately bear those costs.

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Joblessness surged nearly 1 percentage point in Las Vegas and Nevada from May to June, skyrocketing to 12.3 percent in the city and 12 percent statewide, the Nevada Department of Employment, Training & Rehabilitation said this morning.

Those numbers are up from just over 11 percent in May, and they’re also well above the 9.5 percent rate the nation posted in June.

In all, 169,800 Nevadans were out of work and seeking jobs in June, including 15,600 residents who lost their positions in June.

The state’s joblessness averaged 10.6 percent through mid-year, compared with 5.7 percent through the first six months of 2008.

Real average weekly earnings fell by 1.2 percent from May to June 2009. This decrease stemmed from a 0.3 percent decrease in average weekly hours and a 0.9 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Over the year real average weekly earnings increased 2.6 percent.

Consumer prices shot up in June by the largest amount in 11 months, reflecting the biggest jump in gasoline prices in nearly five years.

The Commerce Department reported today that inflation at the consumer level rose by 0.7 percent last month, slightly higher than the 0.6 percent increase that economists were expecting. It was the biggest one-month gain since a 0.7 percent increase last July.

Consumer prices jump 0.7 percent in JuneConsumer prices shot up in June by the largest amount in 11 months, reflecting the biggest jump in gasoline prices in nearly five years.

The Commerce Department said Wednesday that inflation at the consumer level rose by 0.7 percent last month, slightly higher than the 0.6 percent increase that economists were expecting. It was the biggest one-month gain since a 0.7 percent increase last July.

The increase is probably a temporary blip, however, as innflation is not expected to be a problem any time soon given a severe recession which is keeping a lid on wage pressures. Read the rest of this entry »